What Alternative Assets Are Hot Right Now? Where Self-Directed IRA Investors Are Looking in 2026
Is real estate investing in a slump, or are investors simply changing how and where they invest?
There are signs that the traditional real estate playbook is getting harder. In August 2026, existing-home sales fell 2.0% from the previous month and 1.2% from a year earlier. At the same time, inventory increased while home prices remained relatively strong.
So, although transaction volume has slowed, real estate values have not simply collapsed.
Meanwhile, the broader investment conversation is changing.
Prominent entrepreneurs who once focused heavily on real estate are expanding into other areas. Codie Sanchez has built a large following around buying established small businesses. Grant Cardone increasingly teaches business growth, sales and entrepreneurship in addition to real estate. Other real estate educators are also reassessing strategies such as wholesaling as financing costs and deal economics change.
However, that does not mean real estate investing is over.
Instead, alternative investing is becoming broader.
For Self-Directed IRA investors, that creates an important question:
Where are the opportunities now?
What Are the Hottest Alternative Investments in 2026?
Several alternative assets are attracting investor attention in 2026.
They include:
- Private credit and real estate lending
- Private companies and small businesses
- Specialized real estate
- Self-storage and manufactured housing
- Data centers and infrastructure
- Precious metals
- Cryptocurrency and digital assets
- Private equity and Regulation D offerings
Of course, “hot” does not mean “safe.”
Every investment carries risk. Therefore, investors should evaluate each opportunity based on its fundamentals, not simply because a particular asset class is receiving attention.
With that in mind, here are some of the most important investment trends Self-Directed IRA investors may want to watch.
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Private Credit: Investors Become the Bank
One of the biggest alternative-investment themes today is private credit.
Instead of buying a property directly, an investor may lend money to a real estate investor or business. In return, the investor receives interest payments under a promissory note.
For Self-Directed IRA investors, private lending may include:
- Private credit and real estate lending
- Private companies and small businesses
- Specialized real estate
- Self-storage and manufactured housing
- Data centers and infrastructure
- Precious metals
- Cryptocurrency and digital assets
- Private equity and Regulation D offerings
Why Is Private Lending Getting Attention?
Higher interest rates create challenges for borrowers. However, they can also create opportunities for lenders.
As borrowing costs rise, private lenders may be able to negotiate higher interest rates or stronger loan terms. At the same time, investors must consider the borrower’s ability to repay the debt.
Therefore, underwriting still matters.
An attractive interest rate does little good if the borrower cannot make the payments.
For that reason, private lenders should carefully evaluate:
- Collateral
- Loan-to-value ratios
- Borrower experience
- Repayment ability
- Loan terms
- Exit strategy
The investing mindset is also changing.
Instead of asking, “What property should I buy?” some investors are asking, “Could my IRA finance the deal instead?”
That is a significant shift.
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Buying Businesses: The “Boomer Business” Opportunity
Another major investment trend involves acquiring established small businesses.
Codie Sanchez has helped popularize the idea of purchasing so-called “boring businesses.” Examples include HVAC companies, laundromats, roofing businesses, plumbing companies and other established service businesses.
The opportunity is partly demographic.
As Baby Boomer business owners retire, thousands of established companies will need new owners.
Consequently, younger entrepreneurs and investors are increasingly looking at business acquisition as an alternative to starting a company from scratch.
Can a Self-Directed IRA Invest in a Private Business?
Potentially, yes.
A Self-Directed IRA can invest in certain privately held companies, private equity opportunities and other private investments.
However, the structure matters.
For example, an IRA investment in a private business is very different from personally buying a company and then working in that company.
IRA owners must avoid prohibited transactions and self-dealing involving themselves and other disqualified persons.
In addition, certain business investments can generate Unrelated Business Taxable Income, commonly called UBTI.
Therefore, investors should consult qualified tax and legal professionals before proceeding.
Still, the broader trend is important.
Entrepreneurship itself is becoming an alternative investment category.
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Real Estate Is Not Dead. It Is Becoming More Specialized.
So, is real estate investing really in a slump?
The better answer is that real estate is changing.
Traditional housing transactions have slowed. Financing costs are higher, and some deals no longer generate the same returns they produced when money was cheaper.
Nevertheless, investors have not stopped investing in real estate.
Instead, many are becoming more selective.
There Is No Single Real Estate Market
Real estate varies widely by:
- Property type
- Geography
- Financing structure
- Local supply
- Local demand
- Sponsor experience
- Economic conditions
As a result, investors may find opportunity in one sector while another sector struggles.
At uDirect IRA Services, investors use Self-Directed IRAs to hold real estate in many different forms.
Examples include:
- Residential investment property
- Multifamily properties
- Mobile home parks
- Self-storage
- Boutique hotels
- Commercial real estate
- Mortgage notes
- Private lending
- Real estate funds
- Syndications
- Regulation D offerings
Therefore, the real estate opportunity in 2026 may be less about simply buying another single-family rental.
Instead, the opportunity may be about selecting the right property type, market, sponsor and investment structure.
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Self-Storage and Mobile Home Parks
Two real estate niches that continue to attract attention are self-storage and manufactured housing.
Both sectors are driven by practical consumer needs.
Self-storage demand can result from:
- Moving
- Downsizing
- Divorce
- Business inventory
- Estate transitions
- Lack of residential storage
Manufactured housing, meanwhile, addresses another important issue: housing affordability.
As conventional housing becomes more expensive, manufactured housing communities may provide a lower-cost alternative.
Investors Do Not Have to Operate the Property
Importantly, Self-Directed IRA investors do not necessarily have to own and manage an entire self-storage facility or mobile home park.
Instead, they may participate through:
- Private funds
- LLC interests
- Syndications
- Regulation D offerings
Consequently, investors may receive exposure to specialized real estate without becoming the day-to-day property manager.
That distinction matters.
For some investors, the next phase of real estate investing may involve becoming a passive owner rather than an individual landlord.
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Data Centers, Power and AI Infrastructure
One of the most interesting real estate stories today has very little to do with houses or apartments.
It involves data centers.
Artificial intelligence requires enormous computing capacity.
However, computing capacity also requires:
- Buildings
- Land
- Electricity
- Cooling systems
- Fiber connections
- Backup power
- Infrastructure
Therefore, the rapid expansion of artificial intelligence is creating demand far beyond technology companies themselves.
The Investment Opportunity Behind AI
The AI boom may create opportunities involving:
- Data-center real estate
- Energy infrastructure
- Electrical generation
- Battery storage
- Land
- Private infrastructure funds
- Private credit
For many individual investors, these opportunities may be accessed through private offerings rather than direct ownership.
However, investors should remain cautious.
Extraordinary demand can lead to extraordinary valuations.
Therefore, a promising investment theme does not automatically make every individual deal attractive.
Due diligence still matters.
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Gold and Precious Metals
Gold and other precious metals continue to attract investors concerned about economic uncertainty.
Investors may turn to precious metals because of concerns involving:
- Inflation
- Currency risk
- Government debt
- Geopolitical uncertainty
- Stock market volatility
As a result, gold often receives more attention during periods of economic uncertainty.
Can a Self-Directed IRA Own Physical Gold?
Yes, in certain circumstances.
Although most collectibles are prohibited IRA investments, federal law provides exceptions for certain qualifying gold, silver, platinum and palladium bullion and coins.
However, the metals must meet applicable IRS requirements.
In addition, proper custody is important.
Therefore, investors should understand the rules before purchasing precious metals through a retirement account.
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Private Equity and Regulation D Offerings
Private markets are becoming increasingly important to investors.
Regulation D offerings can provide access to privately offered investments involving:
- Real estate
- Private companies
- Energy
- Infrastructure
- Private credit
- Specialized investment funds
For Self-Directed IRA investors, private offerings can provide opportunities that are not available through traditional brokerage accounts.
Private Investments Require Extra Due Diligence
However, private securities can carry significant risks.
For example, they may be:
- Illiquid
- Difficult to value
- Highly dependent on management
- Subject to limited disclosure
- Restricted to accredited investors
Therefore, investors should carefully review the offering documents, sponsor history, financial assumptions and exit strategy.
In addition, investors should understand how long their money may be committed.
Private investments can offer opportunity.
However, they can also require patience.
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Cryptocurrency and Digital Assets
Cryptocurrency remains another alternative asset considered by some Self-Directed IRA investors.
Bitcoin and other digital assets can behave differently from traditional stocks, bonds and real estate.
Therefore, some investors view them as another way to diversify.
However, cryptocurrency can also be extremely volatile.
What Should Investors Consider?
Before using retirement funds to invest in digital assets, investors should consider:
- Volatility
- Custody
- Security
- Liquidity
- Fees
- Concentration risk
- Investment time horizon
In other words, the fact that an IRA can own an alternative asset does not mean every investor should own it.
The investment still needs to make sense for the individual.
So, Is Real Estate Investing in a Slump?
Traditional real estate is going through a difficult period.
Transaction volume is slower. Financing costs remain significant. In addition, deals that worked when borrowing costs were lower may no longer produce the same returns.
However, that does not mean investors have abandoned real estate.
Instead, many investors are changing their approach.
For example, they may ask:
“Should I lend money on the property instead of buying it?”
Or:
“Should I invest in a multifamily fund instead of owning the building myself?”
Other investors may ask:
“What about self-storage or mobile home parks?”
Meanwhile, some are exploring private businesses, infrastructure, precious metals or digital assets.
Therefore, the bigger trend is not the disappearance of real estate.
It is the expansion of alternative investing.
The Bigger Trend: Investors Want More Choices
For decades, many retirement investors were offered essentially the same menu:
Stocks.
Bonds.
Mutual funds
A Self-Directed IRA opens the door to a much broader investment universe.
Depending on the account and investment structure, alternative assets may include:
Real estate
- Private lending
- Private companies
- Precious metals
- Cryptocurrency
- Private funds
- Regulation D offerings
Of course, more choices also mean more responsibility.
Self-Directed IRA investors must evaluate opportunities carefully and understand the risks involved.
Still, having more choices can be valuable.
That is especially true when yesterday’s investment strategy may not work exactly the same way tomorrow.
What Are the Best Alternative Investments for a Self-Directed IRA in 2026?
There is no single best alternative investment.
Instead, the right investment depends on:
- Your investment goals
- Risk tolerance
- Time horizon
- Liquidity needs
- Experience
- Due diligence
However, several areas are receiving significant attention in 2026.
They include private credit, specialized real estate, private businesses, private equity, infrastructure, precious metals and digital assets.
Frequently Asked Questions About Alternative Investments
Can a Self-Directed IRA Invest in Real Estate?
Yes.
Self-Directed IRAs can hold many types of real-estate-related investments, including direct property, private real estate funds, mortgage notes and syndications.
However, the investment must comply with applicable IRA rules.
Can an IRA Lend Money to a Real Estate Investor?
Yes, in certain circumstances.
A Self-Directed IRA can make private loans and hold promissory notes.
However, the loan must be structured properly and cannot involve a prohibited transaction with a disqualified person.
Can a Self-Directed IRA Invest in a Private Company?
Yes, in many cases.
However, prohibited transaction rules, valuation requirements and possible UBTI consequences should be reviewed before investing.
Therefore, professional tax and legal guidance may be appropriate.
Can a Self-Directed IRA Buy Gold?
Certain qualifying gold, silver, platinum and palladium bullion and coins may be held in an IRA when IRS requirements are satisfied.
Proper custody requirements also apply.
Can a Self-Directed IRA Hold Cryptocurrency?
Yes, certain Self-Directed IRA structures may hold digital assets.
However, investors should carefully evaluate volatility, custody, security, fees and concentration risk.
Does uDirect IRA Recommend Alternative Investments?
No.
uDirect IRA Services is a third-party administrator. We do not sell investments, provide investment advice or endorse investment sponsors.
Instead, investors choose their own investments and are responsible for conducting their own due diligence.
Ready to Look Beyond Wall Street?
Alternative investing is evolving.
Real estate remains important. However, today’s alternative-investment universe extends far beyond owning another rental property.
Investors are exploring:
Private lending
Private companies
Real estate syndications
Self-storage
Manufactured housing
Data centers
Infrastructure
Precious metals
Digital assets
Therefore, the most important question may not be:
“What’s hot?”
Instead, ask:
“Which opportunities make sense for my retirement strategy, and have I done the homework?”
A Self-Directed IRA gives investors the ability to explore a much broader universe of assets while retaining the tax advantages associated with retirement accounts.
Want to learn how a Self-Directed IRA can invest beyond stocks, bonds and mutual funds? Contact uDirect IRA Services to learn how self-direction works.
This article is provided for educational purposes only and is not intended as investment, tax or legal advice. uDirect IRA Services does not sell investments, endorse investments or provide investment advice. Investors should perform their own due diligence and consult qualified financial, tax and legal professionals before making investment decisions.
Contact uDirect IRA Services
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